Renzi snaps up Italian job and seeks coalition
THE PRESIDENT of Italy has formally asked Matteo Renzi to form a government and take over from ousted Enrico Letta as Prime Minister.
Renzi officially announced his intention to try to form a new government last week, and now has the task of reforming a coalition. He has shown a preference for the left-right deal Letta headed.
If negotiations succeed, he will be the youngest head of government in the country’s history. Renzi is currently the Mayor of Florence, and is not elected to parliament.
“Italy’s key problem is a chronic lack of growth, due to poor demographics and a number of structural weaknesses… past governments have implemented a number of reforms that have represented a step in the right direction but are still insufficient,” said Luigi Speranza of BNP Paribas.
He pointed to former European Central Bank board member Lorenzo Bini-Smaghi and London School of Economics professor Lucrezia Reichlin as options for the role of new finance minister.